The Central Bank of Kenya (CBK) has opened a Ksh150 billion offer for three reopened infrastructure Treasury bonds, supporting government infrastructure financing.

The offer commenced on Thursday and will close on August 12, 2026, with the auction set for the same day. Investors must submit bids by 10am, and successful bidders will settle payments by August 17.

Details of the Bonds

  • Bond IFB1/2019/016: Matures October 8, 2035; 9.3 years remaining; fixed coupon rate 11.75%
  • Bond IFB1/2021/018: Matures March 21, 2039; 12.7 years remaining; fixed coupon rate 12.667%
  • Bond IFB1/2021/021: Matures August 18, 2042; 16.2 years remaining; fixed coupon rate 12.737%

These bonds are exempt from withholding tax and feature a 50% amortisation structure with first partial repayments scheduled between 2030 and 2031.

Investment Terms

  • Non-competitive bids start at Ksh50,000 and cap at Ksh50 million.
  • Competitive bids require a minimum of Ksh2 million per Central Securities Depository account per bond.
  • Payment details will be available on the CBK DhowCSD Investor Portal or App by August 14.
  • Secondary trading begins August 17 on the Nairobi Securities Exchange in multiples of Ksh50,000.

Additional Features

  • The bonds qualify for statutory liquidity ratio requirements under the Banking Act for banks and financial institutions.
  • Investors can use these securities as collateral for loans from regulated financial entities.
  • Coupon payments are biannual, starting in 2026 until maturity.

Concurrent Treasury Switch Auction

Alongside the bond offer, CBK is conducting a Treasury switch auction from July 30 to August 24 targeting Ksh15 billion. This allows holders of specific Treasury bills and bonds to exchange them for the FXD4/2019/010 bond on a voluntary, multi-price basis.

CBK retains the right to accept or reject bids fully or partially. Investors who fail to settle payments risk suspension from future government securities investments.